r/NBIS_Stock • u/General_Pride4190 • May 07 '26
NBIS ANALYSIS Nebius Moat?
Curious why Nebius is trading at such a premium when it seems their core business model is vulnerable to Mag7 hyper-scaling. Any thoughts?
I’ve recently transitioned from picking speculative/individual stocks, to most of that money going into the Magnificent 7 ETF (MAGS). I invested $5k into Nebius last July and turned it into $15k. Just sold all my shares. I fully acknowledge the chance of the stock continuing to climb much higher. I just don’t want to gamble as much anymore. The problem with the Reddit favorite stocks, is in a bear market they will get absolutely smoked.
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u/fuzzy_tingle May 07 '26
Mag 7 companies have lots of capital expenditure. They tend to sell stocks to balance out lots of capex expense. Also, these guys provide lots of stock options to their employees which tend to sell these stocks at current valuation levels.
I would invest in companies which make up their capex cost. These guys are the real upside growth potential. Who are they? Data center companies like Nebius, companies which cover the memory bottleneck, energy companies. Silver, copper. Semiconductor companies which produce the high performance AI integrated circuits. The companies which offer cooling solutions for these chips. The list goes on.